Telecom New Zealand Ltd announced last Monday that it is acquiring Revera Ltd, a privately owned IT infrastructure and data center based in Auckland, NZ. The price tag for the acquisition is worth NZ$96.5 million.
Telecom announced that the acquisition would bolster its ability to provide IT services for businesses, specifically for cloud and data center services.
The deal said that it would be funded from current loan and cash facilities available. According to estimates, Revera had revenues around NZ$50 million with EBITDA or earnings before interest, tax, depreciation and amortization of NZ$13 million. This is expected to grow by about 15% in the next 12 months.
Telecom further said that it would retain the Revera Brand and would continue to operate as an independent business, according to Telecom chief executive Simon Moutter.
Robin Cockayne, CEO for Revera said the acquisition was 'necessary to keep his company going.' He added, "We've enjoyed spectacular growth. But sustaining our momentum requires new investment and resources."
At the close of Friday's trading, Telecom closed at NZ$2.565 per share.
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